What is the revenue and EPS growth rate for Centerspace year over year?

Did Centerspace beat or miss consensus estimates last quarter?

What is Centerspace's gross profit margin?

What is Centerspace's latest dividend and current dividend yield?

What were the key takeaways from Centerspace’s earnings call?

What does Centerspace do and what are its main business segments?

What guidance did Centerspace's management provide for the next earnings period?

What factors drove the changes in Centerspace's revenue and profit?

- **NOI Growth Strong**: 4.5% YoY same-store NOI driven by revenue and expense control.
- **Denver Challenges**: 3.5% lease rate decline, concessions persisting but aligned with market.
- **Minneapolis Recovery**: 2.1% lease rate growth, 90bps NOI margin improvement post-sales.
- **Balance Sheet Health**: Debt/EBITDA to low 7x, 3.6% avg rate, 7.2-year maturity.
- **2026 Outlook**: North Dakota and Minneapolis lead growth; Denver recovery in 2027.
- **Share Buybacks**: $3.5M used in Q3 to capitalize on valuation gap.


**【CEO Summary Section】**
- Q3 2025 reported 4.5% year-over-year (YoY) growth in same-store NOI, driven by revenue increases and expense control.
- Core FFO guidance lowered by $0.02 to $4.92 due to strategic transactions and G&A costs.
- Minneapolis market showing recovery with blended lease rate growth of 2.1% and occupancy improvement.
- North Dakota outperformed with 5.2% Q3 blended lease rate growth, while Denver faced supply challenges (-3.5% lease rate growth).
- Denver concessions (up to 6 weeks free) expected to persist but align with market norms.
- Capital recycling: $212M from Minneapolis sales (7 communities) and St. Cloud portfolio, reinvested in Colorado acquisitions.
- Share repurchases of 63,000 shares ($54.86 avg price) to capitalize on valuation disconnect.

**【CFO Financial Commentary】**
- Q3 Core FFO: $1.19 per share, driven by 4.5% NOI growth.
- Same-store revenue up 2.4% (20bps occupancy increase, 2.2% AMR growth).
- Expenses down 80bps YoY (3.4% controllable, 7.6% noncontrollable due to tax and insurance savings).
- Full-year Core FFO guidance: $4.88-$4.96, with 3%-3.5% same-store NOI growth.
- 2025 same-store revenue growth revised to 2%-2.5% due to Denver concessions.
- Balance sheet: net debt/EBITDA expected to drop to low 7x by year-end, with 3.6% avg debt rate and 7.2-year maturity.
- Q4 NOI growth outlook: 2.5%-3% with expense control offsetting Denver weakness.

**【Q&A Highlights】**
- **Denver Recovery**: Supply peak in 2025, demand to outpace supply late 2026, 2027. Minneapolis expected to outperform historical norms in 2026.
- **Expense Management**: G&A stable at $28M run rate; property taxes to grow 2% YoY. Insurance renewal expected in low single digits.
- **Capital Allocation**: Prioritize Salt Lake City expansion; Denver portfolio retention at 87% suburban homes with 90bps NOI margin improvement.
- **RUBS Impact**: Colorado legislation limits RUBS pass-through, requiring direct tenant billing.
- **2026 Outlook**: North Dakota and Minneapolis to lead growth; Denver recovery to drive 2027 NOI acceleration.
- **Leverage**: Target low 7x net debt/EBITDA, with deleveraging through earnings growth.


Centerspace (CSR) Q3 2025 Earnings Call Transcript

- **Revenue Growth**: 2.7% YoY same-store revenue growth, driven by Minneapolis stability and tertiary market outperformance.
- **Strategic Portfolio Shift**: Acquired $281M in high-growth markets (Salt Lake City, CO), disposing MN assets to reduce risk. Portfolio rent +$50 YoY.
- **Financial Resilience**: Core FFO $1.28/Q2, full-year guidance $4.88-$5.00. Expense control limits dilution to $0.08 in 2025.
- **Market Dynamics**: Denver facing supply headwinds but improving absorption. Salt Lake City poised for recovery with 145K students and job growth.
- **Balance Sheet Management**: Expanded credit by $150M, targeting 7x debt/EBITDA by year-end. Long-term debt WAM 7.3 years at 3.6%.
- **Shareholder Focus**: Evaluating buybacks at current levels, but prioritizing accretive acquisitions with 4.6-4.8% cap rates.


**【CEO Opening Remarks】**
- **Revenue and NOI Growth**: Q2 same-store revenue increased 2.7% YoY, driving 2.9% NOI growth. Minneapolis saw strong absorption and occupancy gains, while Denver faced supply challenges.
- **Strategic Transactions**: Acquired 341-home Salt Lake City community (Sugarmont) for $149M and 420-home Loveland, CO community (Railway Flats) for $132M. Disposed 12 MN communities to reduce Minneapolis exposure by 300bps.
- **Operational Strength**: 96.1% occupancy, 16.2% retention, and 2.4% same-store lease growth. Online review scores hit all-time high.
- **Denver Outlook**: Soft leasing spreads due to high supply, but improving absorption and job growth expected to drive recovery in 2026-27.

**【CFO Financial Commentary】**
- **Core FFO**: $1.28 per share, up 2.9% YoY. Full-year guidance adjusted to $4.88-$5.00 (midpoint $4.94, +1.2% YoY).
- **Expense Control**: Controllable expenses grew 3.2% YoY, with total expense growth 2.4%. NOI margin on acquisitions 65-70% vs. dispositions 50%.
- **Balance Sheet**: Expanded credit by $150M to fund acquisitions. Net debt/EBITDA expected to trend to 7x by year-end. Debt WAM 7.3 years, rate 3.6%.
- **Impairment Charge**: $14.5M due to shorter holding period for disposed assets.

**【Transaction Discussion】**
- **Acquisition Highlights**: Salt Lake City acquisition at 4.7% cap rate, Loveland at 4.8% (incl. 3.26% HUD debt). Pro forma portfolio rent +$50 vs. Q1.
- **Disposition Pipeline**: St. Cloud sale ($832 homes) expected in Sep, Minneapolis ($679 homes) in Q4. Cap rates on dispositions mid-7% vs. stock trading at 7.5%.
- **Market Trends**: Transaction volumes returning to pre-COVID levels. Salt Lake City has highest momentum in institutional markets, with 145K students and job growth in tech/healthcare.

**【Q&A Highlights】**
- **Capital Recycling Dilution**: $0.06-$0.08 in 2025, $0.15 annualized. Focus on balancing leverage (target 5-6x long-term) with earnings growth.
- **July Leasing**: Denver improving, others stable. 17% leases left for 2025, renewals +2.6% YoY.
- **Market Outlook**: Tertiary markets (ND, NE) outperforming, but MN exposure reduced. Salt Lake City to be scaled with Cottonwood Residential.
- **Buyback Consideration**: Evaluating stock at current levels, but prioritizing strategic acquisitions with lower cap rates.
- **Denver Recovery**: Supply drop expected in 2026, job growth to drive demand. Current focus on reducing concessions and improving retention.


Centerspace (CSR) Q2 2025 Earnings Call Transcript

- **Q1 Strong Performance**: Core FFO of $1.21/share, 2.1% same-store NOI growth, and 120 bps occupancy improvement.
- **Leasing Momentum**: Blended spreads +70 bps QoQ, new lease spreads +2.4% in April, driven by Midwest/Mountain West strength.
- **Denver Recovery**: April spreads up 200 bps QoQ, with inflection expected in Q3/Q4 2025 as supply pressures ease.
- **Financial Discipline**: 5.8% expense growth offset by cost control, reaffirmed $4.98/core FFO guidance.
- **Capital Strategy**: Focus on high-demand geographies with limited supply, opportunistic transactions in 2025.

**【CEO Summary Section】**
- Q1 2025 core FFO of $1.21 per share, driven by 2.1% year-over-year same-store NOI growth.
- Weighted average occupancy improved 120 bps YoY to 95.8%, with April renewal retention at 57%.
- Blended leasing spreads increased 70 bps QoQ, with new lease spreads turning positive at +2.4% in April.
- Midwest and Mountain West markets show resilience, with North Dakota leading at 5.3% year-to-date spreads.
- Full-year guidance reaffirmed: $4.98/core FFO midpoint and 2.25% same-store NOI growth.

**【CFO Financial Commentary】**
- Same-store revenue up 3.5% YoY, offset by 5.8% expense growth due to property tax appeals and assessments.
- Total expenses in line with expectations due to cost control savings.
- Balance sheet remains strong with $223M liquidity, 3.6% weighted average debt cost, and 5.4-year maturity profile.

**【SVP Market Analysis】**
- 2025 apartment supply expansion expected at 2.2%, down from 3.8% YoY, favoring absorption.
- Institutional-quality assets in Colorado and Minneapolis pricing at mid-4% to low-5% cap rates, above public market implied valuations.
- Focus on capital allocation in differentiated geographies with limited new supply and strong demand.

**【Q&A Key Takeaways】**
- Denver market recovery: April new lease spreads improved 200 bps QoQ, with inflection expected in Q3/Q4 2025.
- Omaha occupancy dip due to value-add project move-outs, but April retention rebounded to 58%.
- Capital recycling strategy prioritizes liquidity and long-term growth, with limited transactions in high-supply markets.
- North Dakota economic stability driven by healthcare/education, not agriculture, with 6% of residents moving out to buy homes.
- 2025 capital allocation focused on enhancing Mountain West/Midwest portfolio, with opportunistic mezzanine and OP unit transactions.

Centerspace (CSR)-2 May 25-2025 Q1 Earnings call transcript

- **2024 Performance Highlight**: $4.88 core FFO, 3.3% same-store NOI growth, 56.6% retention rate.
- **2025 Outlook**: $4.98 core FFO guidance, 2.25% NOI growth, 2.4% blended spreads.
- **Market Dynamics**: Minneapolis recovery, Denver supply headwinds, stable smaller markets.
- **Capital Strategy**: Prudent balance sheet management, selective acquisitions with creative financing.
- **Operational Excellence**: 5-star review growth, resident satisfaction improvements.


**【CEO Opening Remarks】**
- 2024 core FFO per share: $4.88, driven by 3.3% same-store NOI growth.
- Portfolio expansion: Denver Lydian acquisition; North Dakota and Minneapolis dispositions improved operational efficiency.
- Resident satisfaction: 56.6% retention rate, 5.3% increase in overall satisfaction, 16% rise in 5-star reviews.
- 2025 dividend increase to $0.77 per share.

**【CFO Financial Highlights】**
- Q4 2024 core FFO: $1.21 per share, 2.1% YoY same-store NOI growth.
- 2025 guidance: $4.98 core FFO midpoint, 2.25% same-store NOI growth.
- Expense control: $900K insurance savings, $0.5M centralization benefits.
- Capital structure: 3.6% WAC interest rate, 5.6-year maturity profile.

**【Market & Leasing Trends】**
- Minneapolis: 70bp occupancy improvement, 4.4% blended spreads in North Dakota.
- Denver: 140bp spread decline, 2.5% 12-month supply growth.
- 2025 blended spreads: 2.4% (3% renewals, 1-2% new leases).
- Smaller markets: stable fundamentals, 2.5%+ NOI growth.

**【Acquisition & Capital Strategy】**
- 2024: $114M ATM issuance, Series B preferred redemption, $10M share buyback.
- 2025 focus: Mountain West/Midwest expansion, OP unit transactions, mezzanine lending.
- Capital allocation: $16-18M value-add CapEx, $1.15K/unit recurring spend.

**【Q&A Key Takeaways】**
- Minneapolis recovery ahead of Denver; 2025 supply tapering supports fundamentals.
- Acquisitions cautious on cap rates; seeking positive leverage through creative structures.
- Retention rate risk: 56.6% 2024 high watermark vs. 50% historical average.
- Non-rent revenue growth in line with core rents, no material FFO dilution.


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